This study aims to analyze the effect of Capital Expenditure and Intergovernmental Transfers on Gross Regional Domestic Product (GRDP) in Southeast Sulawesi Province. This study uses secondary data covering the period 2005–2024 obtained from publications of the Central Statistics Agency (BPS) of Southeast Sulawesi Province. The analytical method employed is multiple linear regression analysis processed using EViews 14. The results indicate that Capital Expenditure has a positive and significant effect on GRDP, implying that increased capital expenditure allocation can stimulate economic activity through infrastructure development and the provision of productive public facilities. On the other hand, Intergovernmental Transfers have a negative and insignificant effect on GRDP, indicating that increased transfer funds from the central government have not been able to directly contribute to regional economic output growth. Simultaneously, Capital Expenditure and Intergovernmental Transfers have a significant effect on GRDP in Southeast Sulawesi Province.
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